€200 million loan to Société Nador West Med for infrastructure development
The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to €200 million to Société Nador West Med to finance the basic infrastructure for a new port on the Mediterranean coast of Morocco, 30 km from the town of Nador.
The development of the port is a major boost for eastern Morocco and is expected to promote the development of the Oriental region by generating economic growth and creating new jobs.
The EBRD investment will contribute to the construction of a breakwater, quays, dredging and related infrastructure works in the port. During the port’s construction phase a number of environmental protection measures will be incorporated, including the reduction of the port’s carbon footprint by using a lower-carbon cement.
In addition, €1 million of technical cooperation assistance funded by the EBRD Shareholder Special Fund and the SEMED Multi-Donor Account will provide management support, a lender's monitoring consultant and will facilitate the implementation of the environmental and social action plan.
The project is expected to be co-financed with the African Development Bank (AfDB) and the Arab Fund for Economic and Social Development, and would represent the EBRD’s first co-financing with either institution. A separate implementation agreement between the EBRD and AfDB will govern arrangements for cooperation on procurement for the project.
The port will include terminals for container transhipment, hydrocarbon storage and transhipment, and bulk. It will also have the capacity to handle other cargo.
Hildegard Gacek, EBRD Managing Director for the Southern and Eastern Mediterranean, said: “We are very pleased to develop such an important project in Morocco. This port is part of a wider development approach which will provide a platform for private-sector led market expansion and help attract foreign investment. Moreover, the development and operation of the terminals will provide a boost to regional economic growth."
Mohamed Jamal Benjelloun, Director General of Société Nador West Med, said: “The Nador West Med project is a priority project for Morocco and represents a key element of a wider development project including a port-industrial platform, Free Zone and logistics capability.”
The EBRD has been investing in Morocco since 2012. To date, the Bank has financed €640 million in 22 projects across the country, in addition to over €150 million of trade facilitation credit lines with local banks. The EBRD has also provided technical assistance support to 200 local, small and medium-sized enterprises.
*Société Nador West Med (NWM), a state-owned limited liability company incorporated in Morocco, is in charge of delivering the Nador West Med project.